Ethereum’s Price Surges, Closing in on Bitcoin’s Rally

Ethereum has seen a surge in its price as it aims to catch up with the recent rally of Bitcoin. Currently, Ethereum is consolidating around $2,680 and is looking to push further above $2,750.

The upward movement of Ethereum began with a solid climb above the $2,450 and $2,550 levels. It is now trading above $2,550 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD provided by Kraken, a bullish trend line is forming with support at $2,550. If the price manages to clear the $2,720 resistance zone, it could steadily rise.

Ethereum’s price progression mirrors that of Bitcoin, which recently surpassed $58,000. While Ethereum did breach the $2,650 resistance level, its gains were not as substantial as Bitcoin’s. The price peaked near $2,722 and is currently consolidating its gains. It remains above the 23.6% Fibonacci retracement level from the $2,311 swing low to the $2,722 high.

At present, Ethereum is trading above $2,550 and the 100-hourly Simple Moving Average. A crucial bullish trend line is taking shape with support at $2,550 on the hourly ETH/USD chart. This trend line aligns closely with the 100-hourly Simple Moving Average and the 50% Fibonacci retracement level from the $2,311 swing low to the $2,722 high.

Looking ahead, Ethereum faces resistance around the $2,700 level, with a major hurdle at $2,720. A breakthrough above $2,720 could propel Ether towards the $2,800 resistance, followed by a key resistance at $2,865. Surpassing the $2,865 level might drive the price further towards the $3,000 resistance zone in the near future.

However, failure to breach the $2,720 resistance could trigger a downside correction for Ethereum. Initial support lies near $2,620, followed by a major support zone at $2,550. Further downward movement could see the price testing $2,450, with potential further losses targeting the $2,320 support level. The next significant support level stands at $2,250.

In terms of technical indicators, the MACD for ETH/USD is gaining momentum in the bullish zone, while the RSI is currently above the 50 zone. The major support level to watch is $2,550, with the key resistance level at $2,720.

This analysis provides insights into Ethereum’s price movements and potential future scenarios, reflecting the ongoing dynamics in the crypto market.